- hence no need to take any action today
- increase in services PMI good for job creation
- unemployment high still but stabilizing
- money market conditions have normalized further
- exchange rate not a policy target but very important for growth and inflation
EURUSD steady at 1.3807 after 1.3817 highs. Now 1.3818 after 1.3830 highs
- inflation expectations helped keep price stability
- ECB is not inactive
- global factors contribute to low inflation
- ECB had broad discussion on rate cut
- current stance on monetary policy to be maintained even after economy recovers
- sees stabilization in credit flows
- sees some improvement in front of fragmentation
- sees timid convergence in lending rates
- emerging market turmoil having muted impact on Eurozone so far
- has pushed some spreads lower
- ECB can not ignore policy spillover effects
- inter connections with Ukraine d0n’t suggest contagion
- ECB hasn’t shelved liquidity measures
